BUSINESS, FUR1 2003 VCAA 2 MC Derek invested `$26\ 000` for eighteen months and earned `$975` in simple interest.The annual interest rate for the investment is A. 0.025% B. 0.0563% C. 2.5% D. 3.75% E. 5.63% Show Answers Only `C` Show Worked Solution `text(Using)\ I = (PrT)/100` `text(Sub)\ \ I = 975, P = 26\ 000, T = 1.5` `text(into the equation)` `975` `= (26\ 000 xx r xx 1.5)/100` `r` `= (975 xx 100)/(26\ 000 xx 1.5)` `= 2.5` `:.\ text(Rate is 2.5%)` `=> C`